North America take Steps to Boost Semiconductor Industry

According to the US government, the North American semiconductor industry will be strengthened by the United States, Mexico, and Canada in an effort to settle a dispute over Mexico’s energy policy that has enraged investors.

Before a meeting in Mexico City, the US government stated that North American leaders would hold a semiconductor forum in early 2023 to increase investment in the strategic high-tech industry.

This would necessitate coordinated semiconductor supply chain mapping, in order to identify requirements and investment opportunities in the production of chips that are utilized in the telecom, automotive, and defense industries.

The United States government made the announcement that the three governments would also increase cooperation to eradicate drug smuggling and improve legal pathways for migrants as they prepared for talks with Mexican President Andres Manuel Lopez Obrador, Canadian President Justin Trudeau, and American President Joe Biden. The COVID-19 pandemic disrupted North American supply chains, which have historically been dominated by Asia in the semiconductor industry.

Mexico’s chances of benefiting from the push to increase semiconductor output have been reduced as a result of the energy dispute. Washington and Ottawa, two states, began formal dispute settlement proceedings against Mexico’s policies in July 2022. The dispute, which centers on Mexico’s efforts to place private investors ahead in cash-strapped energy companies, is being closely monitored at the summit.